Income Tax Returns

All tax returns outstanding for years before the calendar year of bankruptcy (prior years' returns)

Two tax returns for the calendar year of bankruptcy:

The pre-bankruptcy tax return (covering the period from January 1 to the day before the date of bankruptcy)

The post-bankruptcy tax return (covering the period from the date of bankruptcy to December 31)

It is the bankrupt's responsiblity to provide the trustee with all information required to complete
the tax returns. Please see the Income Tax Checklist for more details about the required information.

Notices of assessment for these tax returns will be sent to the trustee. Any refunds resulting from these tax returns will
be sent to the trustee to be included in the bankrupt's estate (for eventual distribution among the creditors).

Any tax owing on tax returns of prior years and the pre-bankruptcy return is normally considered a debt
included in the bankruptcy. Any tax owing on the post-bankruptcy return must be paid by the bankrupt.

GST/HST Returns

If the bankrupt has a business number, CRA may request the trustee to file GST/HST returns
outstanding at at the date of bankruptcy. The bankrupt is responsible to provide the trustee with the required information.

At the date of bankruptcy, a form is filed with CRA to cancel the business number. If the bankrupt wishes to continue the business,
a new business number is applied for. The old business number represents the pre-bankruptcy activity and the new business number,
the post-bankruptcy activity.

Any tax owing on GST/HST returns for periods up to the date of bankruptcy is normally considered a debt
included in the bankruptcy. Any tax owing on GST/HST returns for periods after the date of bankruptcy must be paid by the bankrupt.

GST/HST credits

Cheques for the bankrupt's GST/HST credits will continue to be sent to the trustee's office until both the bankrupt and the
trustee have been discharged. (The trustee is normally discharged about a year after the bankrupt is discharged).
The trustee normally holds these funds until the trustee's fee has been paid in full. Once the fee is paid,
any GST/HST credits received will be forwarded to the bankrupt.

Right of offset

CRA has the right to offset GST/HST credits and a Pre Bankruptcy Tax Refund against pre-bankruptcy debts that you owe
to the government, including income taxes, GST/HST, overpayments of E.I benefits and federally guaranteed student loans.
Both pre- and post- bankruptcy tax refunds may also be seized if you owe arrears of alimony or child support as a
result of a court order.